Louetta's Lore

[Rob]

I had an October $25 call and the stock is now down to $22 or thereabouts so I am attempting to buy back my Oct. 25 call and sell an October $22.50 call for a net debit of 35 cents.

I am experimenting with a strangle. Just prior to XRTX reporting earnings a few weeks ago, it looked to me as though the stock was going to break big in one direction or the other, so I bought 1 Oct. 17.50 put contract and 1 Oct. 20.00 call contract. I thought, okay, the only way I can lose is if this thing trades sideways. Guess what. It's been trading more or less sideways ever since. At least it hasn't moved significantly enough one way or the other to make my experiment a success.

[Rob]

That's a Gr. or is it a Gt. list

According to the list itself, the latter, unless you meant to say that it is a Greek list, which of course it isn't.

[IIC]

According to the list itself, the latter, unless you meant to say that it is a Greek list, which of course it isn't.

Now I'm really mixed up...Gr. means Greek or Great...Gt. means Great

[IIC]

Louetta...I already posted the IIC 100 on my thread...I think there are about 75 of them that are optionable...Doug

[Runner]

Doug, your list currently has 63 stocks that are optionable. I can post this list should anyone want it.

[Louetta]

Louetta...I already posted the IIC 100 on my thread...I think there are about 75 of them that are optionable...Doug

Yup. What I have to do is enter the list of symbols into my option tool. It then will discard any that are not optionable. Then you enter various parameters you want your stock and your option to meet (e.g. a stock with a P/E under x and a related option which provides downside protection of at least two per cent) and run this screen they have and it will list all stock/option combos from your list which meet the criteria sorted by whatever you asked for (maybe % gain if assigned). I'll do it Saturday or Sunday evening. Once I get the list typed in it only takes two minutes to run the tool. Sometimes results change on a daily basis because the option prices seem to get out of balance.

[IIC]

Yup. What I have to do is enter the list of symbols into my option tool. It then will discard any that are not optionable. Then you enter various parameters you want your stock and your option to meet (e.g. a stock with a P/E under x and a related option which provides downside protection of at least two per cent) and run this screen they have and it will list all stock/option combos from your list which meet the criteria sorted by whatever you asked for (maybe % gain if assigned). I'll do it Saturday or Sunday evening. Once I get the list typed in it only takes two minutes to run the tool. Sometimes results change on a daily basis because the option prices seem to get out of balance.

OK...BTW...I'd also like to hear about your Covered Call strategy...'Ya know...Basically what you are trying to do...When you get some time...Best, Doug(IIC)

[IIC]

Doug, your list currently has 63 stocks that are optionable. I can post this list should anyone want it.

My scan showed 75...although I don't know if I ran it exactly right...I did it real fast and may not have clicked all the right boxes...Unfortunately, I don't have access to running the IIC 100 and then filtering it down to those optionable...I have to transfer and run another scan...I can double check over the weekend if it's important...Doug

[IIC]

Yup. What I have to do is enter the list of symbols into my option tool. It then will discard any that are not optionable. Then you enter various parameters you want your stock and your option to meet (e.g. a stock with a P/E under x and a related option which provides downside protection of at least two per cent) and run this screen they have and it will list all stock/option combos from your list which meet the criteria sorted by whatever you asked for (maybe % gain if assigned). I'll do it Saturday or Sunday evening. Once I get the list typed in it only takes two minutes to run the tool. Sometimes results change on a daily basis because the option prices seem to get out of balance.

PS: If you need to copy/paste I can deliver them vertically, horizontally w/o commas or horizontally w/ commas...If it will save you any time???...Let me know...Doug

[Runner]

My scan showed 75...although I don't know if I ran it exactly right...I did it real fast and may not have clicked all the right boxes...Unfortunately, I don't have access to running the IIC 100 and then filtering it down to those optionable...I have to transfer and run another scan...I can double check over the weekend if it's important...Doug

Doug it don't mater to me as I could care less. I noticed you did post your list. To save me some time has their been any changes from the last weeks list? I liked how before you would show the add-ins and deletes. this way I can manually import them into my DB.

[IIC]

Doug it don't mater to me as I could care less. I noticed you did post your list. To save me some time has their been any changes from the last weeks list? I liked how before you would show the add-ins and deletes. this way I can manually import them into my DB.

I only showed the adds/deletes to the Combo List; i.e. Those on both the IIC 100 AND the IBD 100. But I decided to not post IBD info anymore...Let them post their own stuff.

So, what are you asking for?...You want the adds/deletes to the IIC 100?

It is really just a matter of posting them in Alpha sort and comparing them to last week's list...Visually it takes about 2 minutes...Let me know what you want...Doug(IIC)

[Runner]

Doug, I got it. I have a copy of last weeks list and so I'll be able to compare the 2 thanks...

[Tatnic]

I am experimenting with a strangle. Just prior to XRTX reporting earnings a few weeks ago, it looked to me as though the stock was going to break big in one direction or the other, so I bought 1 Oct. 17.50 put contract and 1 Oct. 20.00 call contract. I thought, okay, the only way I can lose is if this thing trades sideways. Guess what. It's been trading more or less sideways ever since. At least it hasn't moved significantly enough one way or the other to make my experiment a success.

a worthy experiment. The nice thing about options is that there are so many ways and combinations available to lose one's money even faster than with the common. There are conservative option plays though...for instance what Haddock does with his call writing.

[Louetta]

OK...BTW...I'd also like to hear about your Covered Call strategy...'Ya know...Basically what you are trying to do...When you get some time...Best, Doug(IIC)

Well the basic idea is to find a conservative strategy so I can get a lot of money exposed to the market with limited risk. Covered calls seem to fit that bill. But first you need a list of stocks which are reasonably solid because you still have downside risk, its just reduced some by selling the calls. On the other hand conservative stocks generally don't offer much of an option premium which is what you're going to make your money off of. The option tool I use lets you screen for a variety of parameters your stock must meet (P/E, earnings increases, etc.) as well as the corresponding option (like the premium). So I have a variety of ways to pick my stocks, 1) just run the tool with a bunch of conservative parameters, 2) I've used the stocks recommended by the Little Book That Beats The Market, 3) go thru the partial listing in IBD looking for premiums and then DD the stocks.

Once I take a position (buy the stock, sell the option and I almost always use one 4-6 weeks out) I then follow it. If the stock goes up I roll the option up so I don't lose so much of the stock upside. If things go OK for that month I hold the stock into the next month and roll the option out to that month. If it goes down I roll the option down like I'm trying to do with ASPV to try to take in a little more premium and soften the loss on the stock. It works pretty well but it really only takes one stinker to cut into your profits because you don't make huge sums on your winners. Last year I did real well with housing stocks but I've picked a few turkeys.

[IIC]

Well the basic idea is to find a conservative strategy so I can get a lot of money exposed to the market with limited risk. Covered calls seem to fit that bill. But first you need a list of stocks which are reasonably solid because you still have downside risk, its just reduced some by selling the calls. On the other hand conservative stocks generally don't offer much of an option premium which is what you're going to make your money off of. The option tool I use lets you screen for a variety of parameters your stock must meet (P/E, earnings increases, etc.) as well as the corresponding option (like the premium). So I have a variety of ways to pick my stocks, 1) just run the tool with a bunch of conservative parameters, 2) I've used the stocks recommended by the Little Book That Beats The Market, 3) go thru the partial listing in IBD looking for premiums and then DD the stocks.

Once I take a position (buy the stock, sell the option and I almost always use one 4-6 weeks out) I then follow it. If the stock goes up I roll the option up so I don't lose so much of the stock upside. If things go OK for that month I hold the stock into the next month and roll the option out to that month. If it goes down I roll the option down like I'm trying to do with ASPV to try to take in a little more premium and soften the loss on the stock. It works pretty well but it really only takes one stinker to cut into your profits because you don't make huge sums on your winners. Last year I did real well with housing stocks but I've picked a few turkeys.

Thx...interesting strategy...Seems like it takes quite a bit of patience though...Doug